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I'm not too involved with the crypto space, but why have a centralized exchange at all? Like why can't the exchange setup a transaction directly between me and
by doorman2 4y ago
I'm not too involved with the crypto space, but why have a centralized exchange at all? Like why can't the exchange setup a transaction directly between me and the counterparty that we both sign?
- ricochet11 4y agowe have lots of decentralized exchanges: uniswap, paraswap, dydx, loopring, etc.... not sure why more people dont use them, perhaps fooled by the convenience/ marketing/ promotional lures of CEXs.
- seaal 4y agoFees are generally much lower when trading on a CEX, especially with small amounts.
- doorman2 4y agoI guess that makes sense given that the CEX can simply update values in their own (non-blockchain) database. This highlights that blockchain tech isn't really ready for prime-time use, yet. If the cost / tx could be brought down significantly, then there would be no need for a CEX.
- EamonnMR 4y agoBecause economies of scale win. Centralizers can consume all available oxygen first, it doesn't matter that they can then go belly up.